Savills Studley Releases Q3 2016 Findings for South Florida

Savills Studley, the leading commercial real estate firm specializing in tenant representation, has released its 2016 Q3 South Florida edition of the Savills Studley Office Market Report.

The quarterly report is an in-depth compilation of office leasing statistics and trends, major transactions, submarket comparisons, employment trends and investment and development trends specific to the South Florida region.

Tenants have leased 6.6 msf in the last four quarters, slightly above long-term average of 6.3 msf; and 1.7 msf in Q3, up ten percent from Q2. Much of this activity has involved renewals or relocating firms shedding space, with suburban office parks in Broward County and new product underway in Miami attracting most tenants for the quarter.

Following an increase in the two prior quarters, South Florida overall and Class A availability rates both decreased in Q3. Overall asking rents increased by 2.7 percent while Class A rents remained close to Q2 levels.

New tenants seeking Class B space at a value have descended on Cypress Creek/Fort Lauderdale, as the submarket attracted three of the ten largest transactions of Q3. Even with this activity, the submarket as the second highest availability rare in the region at 23.1 percent.

Institutional investors are diving into South Florida head first, paying major market prices for institutional-grade assets. This includes the Deutsche Asset & Wealth Management acquisition of Bank of America Plaza in September and the Red Sky Capital/Clark Estate acquisition of the Esperante Corporate Center early in the quarter.

The 2016 Q3 Savills Studley South Florida Market Report can be found on Savills Studley’s webpage, as well as a national report and reports for each of the 29 major U.S. markets